Brahmini Steels land deal cancelled

Hyderabad, April 25 : Chief Minister N Kiran Kumar Reddy on Wednesday approved the proposal to cancel the Government land alienated to an extent of 10,760.66 acres in favour of M/s.Brahmani Industries Ltd., in Vemaguntapalli, Kothaguntapalli, P.Bommepalli and Thugutlapalli villages of Jammalamadugu Mandal of Kadapa District for failure to establish the project to set up an integrated steel plant

It may be recalled here that the Industries & Commerce Department has entered into an MoU with the Brahmani Industries Ltd., to set up an integrated steel plant of 2 million tonnes capacity per annum with its full production capacity of 10 million tonnes by 2017. The Company promised to provide direct employment to 10,000 people and to create indirect employment to one lakh people.

The Government issued orders extending all eligible incentives as per the 2005-2010 Industrial & Investment Promotion Policy.

As per the decision taken by the then State Cabinet on 6.6.2007, orders were issued alienating the land in favour of Green Field Integrated Steel Plant for setting up the plant on payment of market value

As per the MoU, in the first phase of the project, the Company has to complete the project with a production capacity of 2 million tonnes of steel by 2009.

As the Company has totally failed to fulfill its commitment to establish the project as per the MoU, the Industries & Commerce Department terminated the MoU and cancelled the incentives. INN